Colorado predicts significant financial hit on oil, gas

Colorado's oil and natural gas operations are facing unprecedented financial effects this year, the Colorado Oil and Gas Conservation Commission (COGCC) said this week.

Drilling operations have drastically decreased in an economic environment worsened by Covid-19 containment measures, the commission said. Effects in Colorado include shut-in rigs, reduced staffing for producers and service companies and delayed completion of already drilled wells.

Colorado's rig count has decreased from 22 rigs at the end of 2019 to just four rigs as of 4 May, the COGCC said.

The commission said it will continue regulating and inspecting the state's oil and gas industry despite the circumstances.

The pandemic and industry downturn has not represented a significant impediment to safe operations, it said. If the state of business for companies deteriorates to the level that it threatens public health or the environment, the COGCC said it has the authority as a last resort to require oil and gas operators to cease operations.

By David Haydon